Source: Rita Jane Gabbett, MEATINGPLACE.COM, 12/10/10

USDA raised its forecasts for total U.S. meat production for both 2010 and 2011 in its monthly World Agriculture Supply and Demand Estimates report and lowered price forecasts for pork and poultry.
Forecasts for 2010 beef, pork, broilers and turkeys were raised reflecting high slaughter levels during the fourth quarter and higher weights for hogs and broilers. For 2011, production forecasts for beef, pork, and broilers were increased.

The beef production increase largely reflected higher forecast placements of cattle during the fourth quarter of 2010 and early 2011.

Pork production was raised from last month on slightly higher slaughter.

Broiler production was forecast higher as hatchery data indicated continued large egg sets and poultry placements during the fourth quarter of 2010. The turkey production forecast for 2011 was unchanged from last month.

Imports/exports
Beef imports were lowered for both late 2010 and early 2011 as exportable supplies of beef for several U.S suppliers were expected to be relatively tight. Beef exports were raised for 2011 as improved economic growth in major export markets was expected to stimulate sales.

Pork exports for 2010 were reduced as relatively high pork prices were likely constraining growth in exports. Forecasts for pork exports for 2011 were unchanged.
Poultry trade forecasts for 2011 were unchanged.

Prices
The cattle price forecasts for 2010 and 2011 were raised to reflect continued strong demand for cattle.
USDA forecast direct steer prices (all grades) to average $95.19 per hundredweight in 2010, up from $94.81 projected last month. For 2011, it forecast the average price range at $96 to $104 per hundredweight, up $1 on the top of the range from a month ago.

Hog prices for 2010 and 2011 were forecast lower than last month as pork supplies were large. USDA forecast prices for barrows and gilts will average $54.91 per hundredweight in 2010, down from $55.29 forecast last month. It put average prices for 2011 in a range of $53 to $57 per hundredweight, down from a range of $54 to $58 forecast a month ago.

The broiler price forecast was lowered on larger supplies. USDA estimated the average price for 2010 at 83.1 cents per pound, down from 83.4 cents last month. For 2011, USDA forecast broiler prices will average 81 cents to 88 cents per pound, down from 83 cents to 89 cents per pound last month.
To download the entire report, click here.
 

For more stories, go to www.meatingplace.com.